A real estate partnership agreement is between two or more partners and is a document that helps create a joint venture to purchase and manage properties. This agreement is binding on all partners involved, so everyone must agree to its every clause.
If an agreement has more than two partners, it is best to create schedules covering their names. Make sure that you make separate schedules for limited and general partners.
This Agreement is designed and considered effective on this day [Document.CreatedDate] between [FirstPartner.FirstName] [FirstPartner.LastName] and [SecondPartner.FirstName] [SecondPartner.LastName] .
The partnership’s name shall be (Partnership title), referred to as Partnership in this agreement. The office and the business place of this Partnership shall be at [Partnership.StreetAddress] , city of, [Partnership.City] and state [Partnership.State] . The partners are allowed to get into other ventures and businesses regarding real estate to achieve success in this Partnership.
Investment Contributions by General Partners
All the General Partners should contribute cash as mentioned in Exhibit A opposite their names. This cash shall be referred to as the initial capital.
Besides cash, the partners should contribute their interest right and title in a real estate property present for purchase or sale. The details of the property can be found in Exhibit B.
Make sure you attach these exhibits with the agreement. The purpose of these exhibits is to cover information that otherwise may not fit properly in this agreement.
All the Limited Partners shall be responsible for contributing the cash amount mentioned against their names in Exhibit C.
All the net losses and profits in this Partnership shall be divided among the partners according to the proportion mentioned opposite to their names in Exhibit D.
The Partnership is responsible for creating and maintaining separate capital accounts for each partner, holding their capital contributions. No partner shall be able to withdraw cash from their account without the consent of other partners. All the interest will be paid on the partner’s income account.
This Partnership will maintain separate income accounts for each partner, and any profit or loss shall be charged against this account. If a partner’s income account has a negative balance, the losses incurred shall be charged against their capital account.
There is no salary for any service performed for the Partnership. All the profits earned shall be distributed at the end of every month or as determined by the Partnership.
Make sure that you attach a schedule with this template covering all the names of the partners and their respective profit percentages.
Each partner has an equal right to maintain the management of this Partnership. Every partner agrees to spend as many resources and time on this Partnership as possible.
No single partner has the authority to make decisions for this Partnership without involving other partners.
Each partner has the authority to make only
Both decisions are on behalf of the other partners.
All partners agree to dissolve the Partnership at any time with the consent of
Majority of the Partners
Other third parties
As soon as the Partnership dissolves, the Partners must wind up all the Partnership-related affairs.
A Partner is allowed to retire from the Partnership
At their preferred time At the end of the fiscal year A calendar month’s end Only after (number of years) after the formation of this PartnershipAfter the decision of a Partner to retire, the remaining partners can decide whether to liquidate this Partnership or continue establishing its business.
If a Partner passes away, the remaining Partners shall decide whether to liquidate the Partnership and continue buying or selling properties after purchasing the deceased partner's interest.
No Partner is permitted to sell, assign or dispose of their interest in any manner without the consent of other Partners in this Partnership.
An arbitrator shall settle any unresolved dispute arising between the Partners. Any written decision made by the arbitrator shall be final and binding on all the Partners.
This Agreement is binding upon the benefit of all Partners and their heirs, legal representatives, executors, and administrators.
All the terms of this Agreement shall be constructed per the state's laws [Partnership.State] .
This Agreement can be amended after receiving a written agreement signed by all the Partners.
The list of provisions mentioned above isn’t limited. If the partners believe that there is room for more clauses, they can get them included in this agreement.
Any communication or notice made to a Partner should be in writing and must be handed over or delivered by post immediately.
In Witness Whereof, this Partnership Agreement was created and delivered on the date mentioned above.
MM / DD / YYYY MM / DD / YYYY MM / DD / YYYY MM / DD / YYYYUsed 5,066 times
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This agreement is a contract that is necessary to initiate a joint venture between two or more people. The parties in the venture are usually interested in managing or purchasing real property.
If a legal dispute arises, the real estate partnership agreement helps establish rules to avoid mishaps. The agreement covers each partner’s responsibilities and commitments.
When two or more parties combine their expertise and capital to buy, lease, or develop a property, they create a partnership. It usually works as a solid investment strategy that integrates their strengths into one project.
The partnership works well for people interested in building long-term wealth and smooth cash flow via real estate. Once the partners put in their initial investment, the management of lawyers, realtors, and contractors starts. In situations where only one partner has invested money, the management of tasks usually becomes the responsibility of the partner who hasn’t.
Moreover, when a party partners with another, more investment and resources are introduced, increasing the chances of success. This partnership also offers significant flexibility during the distribution of profits and losses.
Here are a few things that your agreement must have:
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